Reinet

I had been meaning to blog about Reinet earlier this week and then got swamped with other stuff.

Upfront I need to remind you that my primary reason for buying shares in private equity firm Reinet was a desire to get some access to the Rupert family's "deal-flow" and their ability to spot good investment opportunities and generate a return for shareholders.

I got in quite cheaply so I am up a few bucks on this investment but it was interesting to note their comments in their recent results announcement.

One of the big concerns I had was that Reinet would become something of a "value trap" along the lines of Venfin where it took a long time for shareholders to get anything significant in the form of dividends or realised profits from investments.

Bear in mind that Reinet enjoys handy "cash-flow" from its investment in British American Tobacco so there should be no reason why shareholders shouldn't get a piece of this.

I thought it was quite encouraging then that Reinet mentioned that dividends were on the cards in the coming financial years.

LEHMAN BROTHERS’ MERCHANT BANKING BUSINESS JOINTLY ACQUIRED BY REINET AND CURRENT

Reinet Investments S.C.A., through its wholly-owned subsidiary Reinet Fund S.C.A. F.I.S., and the current management team of Lehman Brothers Holdings Inc.’s Merchant Banking business have completed the acquisition of the assets of Lehman Brothers’ Merchant Banking business. Reinet and the management team have created a new entity, which has been named Trilantic Capital Partners (‘Trilantic’). Trilantic will manage approximately $3.3 billion in portfolio assets
through the two former Lehman Brothers funds – Fund III and Fund IV (‘the Funds’).

Through the transaction, which has been approved by the Funds’ limited partners, Reinet has purchased a 49% stake in Trilantic for $10 million and will take over Lehman Brothers' $230 million of un-invested limited partner commitments to Fund IV. The management team will own the remaining 51% of the partnership.

Charles Ayres, former managing director and head of global merchant banking for Lehman Brothers, will manage the new entity along with his four other partners: E. Daniel James, Joseph Cohen, Vittorio Pignatti-Morano and Javier Banon.

Johann Rupert, Executive Chairman of Reinet, said:
“Alan Quasha, principal of Quadrant Management and Vanterra Capital, played the key role in leading the transaction. Without his experience and diligence the deal would not have closed. Alan will serve on Trilantic's Investment Committee. The former Lehman Brothers franchise and closely knit team provide a strong platform with significant uncommitted capital at a time of great investment opportunities in the private equity middle market.”